MOLs Bold Shift: Preparing to Source Most Crude Oil Beyond Russia Amid Druzhba Pipeline Concerns

Hungary’s largest oil and gas corporation, MOL, indicated on Friday that it could obtain the majority of its crude oil from sources outside of Russia if there were interruptions to the Druzhba pipeline, indicating a notable change from its previous position that it was impossible to avoid Russian supplies.

In its earnings report for the third quarter, the company noted, “If the crude shipments through the Druzhba pipeline were to decrease significantly, MOL could enhance its use of the Adriatic pipeline, providing roughly 80% of the crude intake for its landlocked refineries.”

The Adriatic pipeline allows Hungary to import oil via sea and then transport it inland through pipelines to refineries throughout Central and Eastern Europe.

Bloomberg characterized this announcement as a «shift» from the consistent narrative over recent months by Prime Minister Viktor Orbán and MOL that Hungary’s refineries were heavily reliant on Russian crude.

MOL’s financial report cautioned that this pivot could involve “greater technical risks and increased logistics costs.”

This development occurred just hours before Orbán was set to meet with U.S. President Donald Trump in Washington, where discussions were anticipated to revolve around Hungary’s dependence on Russian energy and potential exemptions from U.S. sanctions. MOL’s executive chairman, Zsolt Henádi, was part of Orbán’s delegation.

Hungary has resisted European Union initiatives to cease Russian oil imports by 2027 but still acquires about 90% of its crude from Russia.

Following Russia’s invasion of Ukraine in 2022, the EU granted Hungary and Slovakia temporary exemptions, and MOL has gained from discounted Russian oil supplies.

MOL has invested up to $700 million to upgrade its facilities for processing non-Russian crude, but the completion of these projects has been postponed until 2026, according to Reuters last year.